The expansion of the role of local public institutions and the development of modern models of urban governance have increased the scope and impact of administrative decisions on the rights and interests of citizens. Although such decisions are adopted with the aim of securing the public interest and ensuring the proper administration of the city, in many cases they result in material and moral harm to individuals. Accordingly, the issue of the civil liability of urban decision-making institutions has become one of the fundamental challenges of contemporary private law. Ambiguity regarding the foundations of liability, the conflict between the sovereign nature of administrative decisions and the individual rights of citizens, and the inefficiency of certain mechanisms for compensation have further intensified the need for a careful examination of this subject.



The present study aims to explain and analyze the foundations of civil liability arising from administrative decisions within the framework of urban governance, with emphasis on compensation for damages sustained by citizens. It is conducted through a descriptive-analytical method and with a comparative approach. The study first examines the theoretical and conceptual foundations of civil liability in Iranian law, and then analyzes the manner in which these foundations are applied to administrative decisions made by urban institutions. Subsequently, through comparative study, the approaches adopted in selected legal systems concerning liability arising from administrative decisions and the methods of compensating citizens are evaluated.

The findings of the study indicate that the Iranian legal system, particularly in the field of urban governance, remains influenced by the traditional fault-based approach. This, in many cases, restricts the possibility of full and effective compensation for damages suffered by citizens. By contrast, comparative legal systems, by moving toward the recognition of strict liability or risk-based liability, have provided broader protection for citizens’ rights.